Lennox Q3 revenue misses on competitive pressure, inflation
LII•Lennox Q3 revenue rose 10% year over year to $1.57 billion, slightly below expectations, while adjusted EPS fell 7% to $6.84 and missed estimates. The company lowered its 2026 adjusted EPS outlook to $21.00-$21.50 from $23.00-$24.00.
1. Quarterly results
Lennox reported Q3 revenue of $1.57 billion, compared with analyst expectations of $1.58 billion. Adjusted EPS was $6.84, below the $7.36 consensus, and GAAP EPS was $6.41.
2. Pressure and outlook
The company said heightened competition, product cost inflation, tariffs, and higher fuel and distribution costs pressured profitability. Lennox expects 2026 revenue growth of about 6%, including 5% from acquisitions, adjusted EPS of $21.00-$21.50, and free cash flow of $700 million to $750 million. It previously forecast adjusted EPS of $23.00-$24.00.
